“No ruler can establish himself
without trust from the people.” ―Confucius
When you look at the collapse of
global companies such as Enron, Leyman Brothers, Tyco and other companies, it
is obvious that there is a steep decline in ethical values. People are losing trust on leaders gradually. Opinion polls blame that the challenge is
acute and it is tough to reverse the trend to build trust. Some people blame business schools. Hence, let us discuss about trust and
transparency to achieve organizational excellence and effectiveness in this
post.
There are several elements of trust
such as competence, commitment, communication, credibility, reliability and
integrity. When leaders combine these elements and walk their talk, they can
build trust in various stakeholders.
When leaders cut corners, they lose
trust in the stakeholders. When leaders are selfish and gain at the cost of
others, they lose trust. When leaders emphasize on ends rather than on means,
they lost trust. There are leaders who were beset with scandals and finally hit
their rock bottom. However, there are a few leaders who realized their mistakes
and worked hard, won trust and confidence from others. For instance, Jimmy
Carter left the presidency after one term with a somewhat tainted image. The
economy was in a shambles, rescue efforts for kidnapped hostages had failed,
and confidence in his judgment was very low. However, over subsequent years,
with dedicated work through Habitat for Humanity, peacemaking, and service, he
was able to resuscitate his image and create a new brand as a Good Samaritan,
peacemaker, and diplomat. In another shift, Bill Gates founded Microsoft and
became known for his aggressiveness and business competitiveness. But when he
donated a great deal of his personal fortune and his time to philanthropy, he
began to change his cutthroat image to one of concern and compassion. However, they are exceptional cases. Here is a
story of Mark who struggled hard to rebuild trust in lenders.
A
Short Story on Rebuilding Trust
Mark did a wholesale trading business
and was bankrupt as some of his customers took goods on credit from him and did
not pay him the money. He filed cases in court but ineffective. Lenders began chasing him as he took loans
from others. Unable to bear the pressure from his lenders, he absconded with
his family to unknown location for safety. After a few years, he visited the
previous place of his business to settle the debts. He still had to pay the debts to some of the
lenders. Mark informed them that he would come back next time and pay the remaining
debts. But the lenders did not trust as he absconded once. With the help of
guarantors he came back to the place of his existing business, raised a few
loans and paid back the money to the rest of the lenders. He stood by his commitment and proved that he
would not make the same mistake again.
Takeaway from this story is once trust is broken it is tough to build
it. Hence, everyone must ensure that they honor their commitment to build trust
in others.
Leaders are always under scanner.
People often look at negative aspects rather than positive aspects. Hence,
leaders must be careful in their personal and professional lives. It is easy to
fall from the top of the tree but it is very tough to climb the tree.
Similarly, it is easy to earn bad name but it is very tough to earn good name. Warren Buffett once said: “It takes 20 years
to build a reputation and 5 minutes to ruin it. If you think about that, you’ll
do thing differently.”
Conclusion
Trust and transparency are essential
to success of businesses. Hence, always emphasize on values and principles to
accomplish your goals. Remember, we carry either good or bad reputation after
our death. Why shouldn’t we carry good reputation to leave a mark behind for
others to follow?
“To be trusted is a greater compliment
than to be loved.” —George MacDonald
Note: It is based on my upcoming authored
book tentatively titled, 21 Success
Sutras for CEOs: How Global CEOs Overcome Leadership Challenges in Turbulent
Times to Build Good to Great Organizations.
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Professor M.S.Rao, India
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Leadership Consultants India
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